Conversion in Music Streaming Services

Demand spillovers between distribution channels are critical for revenue streams in the music industry. Drawing on consumption capital theory, this study investigates impact of a subscription (unsubscription) or upgrade (downgrade) streaming live, physical, and digital consumption. The propensity score matching approach applied to biannual panel with six waves indicates that conversion subscriptions spills over live market changes willingness pay (WTP) demand events. Converting from no free premium leads particularly high surplus WTP music. Unsubscribing downgrading decreases However, rather unrelated physical purchases. A scenario analysis deleting option outperforms restricting features available users. authors provide contingencies finding.